Quote from: creighto on November 20, 2010, 11:24:38 PM

Quote from: asdf on November 20, 2010, 11:05:47 PM

Quote from: db on November 20, 2010, 08:07:31 PM

The maximum block size must be continuously adjusted to keep the transaction prices stable. The only way to change the maximum block size is through a lengthy political process of debate, decree, network fragmentation and majority agreement.

This is a bad idea. The generators will collude to keep the block size small; transactions scarce, gouging the market.

Some may try. Keep in mind that generators have no sustainable monopolies on generation, not even as a group. If the major generators collude to keep block sizes small amongst themselves; say by keeping their own max block sizes at 1 meg, but the regular users' clients all have a max block size limit of 3 megs, then the rising backlog of lower fee transactions will attract new players into generation. Maybe forcing the colluding generators to change, maybe not, but a natural price balance will be maintained. Perhaps the occasional blockchain split fight is neccessary.

Okay, I'm starting to like this idea. It could be a bit messy with blockchain splits, but it seems like it will work.